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Renew | August 2018

Wind offshore projects are new opportunities

<span style="font-weight: bold;">Ramesh Kymal, Chairman and Managing Director, Siemens Gamesa Renewable Energy<br /> <br /> In the wake of renewable energy capacity addition revising upward to 67,000 MW by 2022, do you think the country has a policy environment favourable to achieve this? </span><br /> Given the amount of auctions rolled out currently and the expected future auctions for wind, and with the industry's manufacturing prowess, we can confidently say that the currently-set target of 60 GW can be achieved. However, grid infrastructure improvement and grid management are critical to scale up the renewable energy. It is difficult to keep up the growth of the grid with the current level of auctions. Additionally, grid planning should be synced with the deployment plan of renewable energy and this needs immediate attention. <br /> <br /> Another key challenge is the bankability and profitability of DISCOMs. It is in the larger interest of the nation that the DISCOMs are healthy. Using SECI as a trader to improve bankability is a welcome move, but in the long run, the government needs to ensure that DISCOMs are profitable. We believe that there is a significant latent demand for power, which is unmet due to the constraints that DISCOMs face in expanding the power delivery systems and quality.<br /> <br /> <span style="font-weight: bold;">What are the three major challenges the wind industry is facing? </span><br /> Wind turbine manufacturers are facing pricing pressure as the government has withdrawn subsi-dies and pitted RE against the conventional energy sources like coal and gas through auctions. The price discoveries in the first few auctions were aggressive and were primarily attributed to the demand-supply imbalance in the market. The recent auctions saw a marginal rise in the tariff due to the stabilisation of the market with a rise in the auction volume and future visibility. We are expecting the tariffs to rise further as we see the projects moving from the current high wind potential sites in Tamil Nadu and Gujarat to other states where the wind potential is lower. <br /> <br /> We believe that the future tariffs will be functions of long-term profitability of the industry, wind resources and the demand that the government creates via auctions.&nbsp; <br /> <br /> <span style="font-weight: bold;">The government also has given thrust to offshore. Do Indian companies have the technological and manufacturing capabilities to put up offshore projects?</span><br /> MNRE has announced targets of 5 GW and 30 GW offshore wind capacity addition in the country by 2020 and 2030 respectively. India's decision to explore offshore is certainly a welcome move. India is one of the important markets which is set for the growth, not just in onshore but also now in offshore. With our market advantage in the country and our well-positioned offshore business globally, we are fully-equipped to welcome the offshore market with open arms.&nbsp; <br /> <br /> However, India needs to work on creating the right ecosystem and infrastructure to attract in-vestments as offshore is very different from onshore. In fact, the turbine is the least problematic part of the value chain. Ports, marine equipment, fabrication units and marine electrical infrastructure are vital. Also, the permitting and approval process for offshore is very cumbersome, especially considering India's sensitivities with security. <br /> <br /> <span style="font-weight: bold;">Currently, India exports close to 500 MW per annum. How realistic is it to achieve 10 GW exports by 2022? </span><br /> India's manufacturing prowess, cost competitiveness, value chain and technology edge, certainly positions us to be an export hub. The country has the potential to export anywhere between 3-5 GW per annum. But it is important to develop the right ecosystem and policy framework. This is going to be a big opportunity for the industry in the future.<br />
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17 Oct 2016
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20 Sep 2016
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20 Jun 2016
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